In-House Financing

What is ‘In-House Financing’

In-house financing is a type of seller financing in which a firm extends customers a loan, allowing them to purchase its goods or services. In-house financing eliminates the firm’s reliance on the financial sector for providing the customer with funds to complete a transaction.

Explaining ‘In-House Financing’

The automobile sales industry is a prominent user of in-house financing. Many vehicle sales rely on the buyer taking a loan, in-house financing allows the firm to complete more deals by accepting more customers. Whereas banks or other financial intermediaries might turn down a loan application, car dealerships can choose to lend to customers with poor credit ratings.

Further Reading

  • Spatial lock-in: Do falling house prices constrain residential mobility? – [PDF]
  • Financial integration, housing, and economic volatility – [PDF]
  • The local geographies of the financial crisis: from the housing bubble to economic recession and beyond – [PDF]
  • Trends in park tourism: Economics, finance and management – [PDF]
  • Islamic House Financing: A Critical Analysis and Comparison with Conventional Mortgage – [PDF]
  • The rise in mortgage defaults – [PDF]
  • Why publicly-financed health insurance schemes are ineffective in providing financial risk protection – [PDF]
  • The relationship between house prices and house purchase loans: The Spanish case – [PDF]